USACC member news archives

ATLANTA/NEW YORK, January 8, 2001 – Alston, Bird LLP, a law firm with more than 500 lawyers and offices in Atlanta, Washington, DC, Charlotte and the Research Triangle and Walter, Conston, Alexander & Green, P.C., an international law firm headquartered in New York, have combined their practices. The combined Alston & Bird has over 550 lawyers with major offices in Atlanta, Charlotte, New York, the Research Triangle, Washington, DC and a liaison in Munich. All partners of both firms are continuing as partners in the combined firm.

“For some time Alston & Bird has recognized the importance of developing a New York platform to better serve its multinational clients located in New York such as American Express, Bank of New York, Citigroup, Fortis, Inc., AMVESCAP and INVESCO, Itochu International, Matsushita, TLC Beatrice, Verizon and others. Additionally, the firm has sought to enhance its capital markets and financial services practice with New York and European based investment banks and financial institutions; and to expand its global practice, particularly in e-business, technology, intellectual property, telecommunications and media,” noted Ben F. Johnson III, managing partner of Alston & Bird.

“In Walter, Conston, we have found the perfect partner with which to develop that platform. Walter, Conston is a firm with a rich history that dates back to 1843, a collegial culture that emphasizes mutual respect and teamwork, a practice that for decades

has focused on a client base with strong connections to countries outside the United States including Germany, Austria, and Switzerland and a client base with a strong e-business, technology, pharmaceutical, intellectual property, telecommunications and media focus that includes clients such as Bertelsmann, Beiersdorf, BMG Music and Doubleday Direct,” Johnson added. Explaining the forces motivating his firm in the merger Walter, Conston Managing Partner Aydin Caginalp commented, “As the demands and requirements of our clients have grown with their increasing global activity, we felt the need for increased depth, particularly in areas like antitrust, securities, environment, intellectual property and technology, and particularly in sophisticated patent areas. Consequently, we had been looking for a merger partner with these recognized practice strengths, strong financial performance and cultural compatibility, and are delighted to join forces with Alston & Bird, a firm with the practice strength we need. With 60 members of the patent bar in all fields of technology and one of America’s largest Internet and e-business practices with over 180 attorneys Alston & Bird was an ideal fit.”

Caginalp added, “Alston & Bird brings extensive experience in domestic and international licensing and distribution of information software and content, systems integration and outsourcing, news media, telecommunications, electronic commerce, digital signatures, intellectual property protection and litigation, capital formation at all stages of growth, IPOs, merger and acquisitions and joint ventures. Given their particular focus on the application of these capabilities to technology, electronic commerce, and traditional businesses Alston & Bird will allow us to address the current and future needs of our clients. In addition what became obvious as our discussions progressed were the benefits of joining a firm repeatedly recognized nationally by Fortune Magazine as one of the 100 Best Places in America to Work and the advantages to our clients who have made significant investments in the Southeastern United States in having available the depth of legal resources of Alston & Bird.”

Walter, Conston, Alexander & Green, P.C. is a midsize, full-service law firm that offers clients both internationally known authorities in cross-border business transactions and specialists for laws and regulations in local jurisdictions. Walter, Conston’s practice areas include: mergers and acquisitions; antitrust; corporate and commercial transactions; creditors’ rights and bankruptcy; employee benefits; executive compensation and employment; finance; securities and banking; immigration and naturalization; intellectual property and technology; litigation, arbitration and alternative dispute resolution; media and entertainment; real estate; taxation; and trusts and estates.

Alston & Bird is one of the largest and oldest law firms in the U.S. Its more than 500 attorneys provide a full range of services to domestic and international clients who conduct business all over the world. Alston & Bird’s practice areas include: Internet and e-business; antitrust and investigations; tax and employee benefits; capital markets and investments; financial services; leveraged capital and public finance; intellectual property; international; trial and appellate practice; health care; real estate; environmental; bankruptcy, reorganizations and workouts; fiduciary; and labor and employment.

The sale, decided on August 16th of 100% of Österreichische Postsparkassen AG (P.S.K.) to the best and highest bidder, BAWAG (Bank für Arbeit und Wirtschaft AG) was the first major step taken by ÖIAG (Österreichische Industrieholding AG) to successfully implement the privatization strategy adopted in accordance with the government's instructions of February 2000. ÖIAG's next major project in 2000 is to prepare Telekom Austria AG for flotation on the stock market. This was stated by ÖIAG's two CEOs Rudolf Streicher and Johannes Ditz who described the sale of P.S.K. as a successful move from the point of view of both owner and P.S.K., because BAWAG's bid is based on a solid offensive strategy which also opens up a future perspective for P.S.K.'s staff. The sale P.S.K. was clinched after ÖIAG, advised by the investment bankers UBS Warburg, launched a tendering procedure in conformity with EU rules. Bids were handled in several stages. As BAWAG chief Helmut Elsner stated, the price, 17.6 billion ATS, which falls due in total as soon as the deal gets the necessary authorizations, will be financed by BAWAG from its own financial resources. BAWAG is not planning a capital increase for this purpose. Should a cash injection become necessary later, BAWAG's two owners, the Austrian Trade Union Federation (54%) and Bayerische Landesbank (46%) will both pull their weight. This would not entail any shift in their relative stakes. After taking over P.S.K., BAWAG intends to cooperate with the Post Office, which will be offered to buy itself into P.S.K. with a blocking majority, Elsner said. Referring to Austria's 2,300 post offices, which P.S.K. has in the past used to sell its products, Elsner said that BAWAG/P.S.K. also want to rely on the Post Office's whole machinery. He nated that BAWAG banks and post offices already offer similar products. In addition, Post Offices will in the future also sell the services of the Kuefa travel agency, sold by BAWAG to Bayernl B in spring 2000. ÖIAG will use it's receipts from the P.S.K. sale, as stipulated by the 2000 ÖIAG Amending Act, to pay back outstanding loans, i.e. to reduce the state-owned sector's overall indebt ness. As Rudolf Streicher stated, this will cut ÖIAG's debts to just over 60 billion ATS. Of the total of 17.833 billion ATS ÖIAG will be receiving for P.S.K., 17.6 billion ATS and the price paid by BWAG, while the rest is ÖIAG's pro rata dividend for this year. P.S.K. is the last of the big state-owned Austrian banks to be sold.

Austrian Airlines (AUA) in July 2001 will buy the shares of Lauda Air (about 23%) held by the airline's Founder, ex-formula 1 motor racing champion Niki Lauda. This will give AUA the majority of Lauda Air. The move was confirmed by AUA CEO Mario Rehulka at the AUA group's presentation of half-yearly results. AUA already holds about 36% of Lauda. Lauda'a small shareholders will be offered a lump-sum settlement, should this be required by Austria's takeover legislation, Rehulka said.

He did not state the amount of the offer, which may possibly be extended to small shareholders before July 2001. A voluntary share swap for AUA stocks will also be conceivable, one hears from AUA board circles. But the takeover of Lauda will not entail any change in the AUA group's structure, another AUA CEO, Herbert Bammer, said. Tyrolien (already owned 100% by AUA) and Lauda will remain as brand names. Niki Lauda is also expected to remain on the board of his airline. A complete merger is out of the question because this would mean paying Lauda staff the same salaries as AUA employees (i.e. lift them to a higher AUA level), Rehulka said. Rather synergies will be explored in other areas such as sales, technology, marketing etc.

The first half of 2000 brought AUA heavy losses. In its ordinary activities, the airline lost 346.5 million ATS (25.18 million €), compared to a profit of 27.5 million ATS in the first half of 1999. The company's losses were even higher, 780 million ATS, if once-off effects such as the sale of planes are discounted. Turnover rose from 9.2 billion ATS to 10.1 billion ATS. Herbert Bammer says the airline's losses were due to soaring fuel prices, up 88% from last year, and the high dollar rate. If this doesn't get better soon, ticket prices will have to be raised again. By now, about 10% of ticket receipts is spent on fuel. (Source: Der Standard.)

While the USACC is restructuring its offices at 165 West 46th Street, New York, NY, we would like to express our gratitude to Austrian Trade Commissioner Benno Koch and his team, who provided their offices and support for out first successful membership drive and the implementation of our Web site. Since September 1, 2000 the CEO of VA TECH Elin USA Corp., Walter Paminger is providing space and infrastructure for the second membership drive. A computer provided by VA TECH was installed at the office of the chamber earlier.

RZB Finance LTD. supported these activities by donating interns for building a data bank for the USACC and is a sponsor of the Web site. In addition many other members donated their time and expertise for the Chamber.

HypoVereinsbank and Bank Austria agreed to merge through a stock swap. This merger will create Europe's third largest bank and the world's fifth largest bank with 65,000 employees, 2,000 branches and total assets of US$ 646 billion.

	Total assets
1- Deutsche Bank:	$843 billion
2- BNP Paribas (France):	$701 billion
3- Hypo/Bank Austria:	$646 billion
4- UBS/Switzerland:	$613 billion
5- HSBC/Great Britain:	$569 billion

HypoVereinsbank will assume control over all overseas ventures of the newly merged bank and Bank Austria will continue the lead in Central and Eastern Europe.

Both banks are Flagship Members of the United States Austrian Chamber of Commerce through U.S. subsidiaries.

The Executive Vice President Sales for Lufthansa German Airlines Thierry Antinori said farewell to Uwe Hinrichs, Vice President North America and welcomed his successor Thomas Winkelmann during a reception at the Intercontinental Hotel in Manhattan on August 24, 2000.

According to the International Monetary Fund and the German Bundesbank (latest available data from 1998), Austria leads in income from tourism with $1,172.80 per capita of the population world-wide.

Out of the world-wide yearly spending on tourism of $385 billion, Austria's share is $9.5 billion, which puts it in 9th place behind the USA, Germany, Great Britain Japan, France, Italy, the Netherlands & Canada.